Filed Pursuant to Rule 433
Registration No.: 333-132249
[Banc of America Securities Logo]
-----------------------------------------------------
The asset-backed securities referred to in these materials, and the asset
pools backing them, are subject to modification or revision (including the
possibility that one or more classes of securities may be split, combined or
eliminated at any time prior to issuance or availability of a final prospectus)
and are offered on a "when, as and if issued" basis. You understand that, when
you are considering the purchase of these securities, a contract of sale will
come into being no sooner than the date on which the relevant class has been
priced and we have confirmed the allocation of securities to be made to you; any
"indications of interest" expressed by you, and any "soft circles" generated by
us, will not create binding contractual obligations for you or us.
Because the asset-backed securities are being offered on a "when, as and
if issued" basis, any contract of sale will terminate, by its terms, without any
further obligation or liability between us, if the securities themselves, or the
particular class to which the contract relates, are not issued. In addition,
since the asset-backed securities and the asset pools backing them are subject
to modification or revision (including the possibility that one or more classes
of securities may be split, combined or eliminated at any time prior to issuance
or availability of a final prospectus), any such contract also is conditioned
upon the understanding that no material change will occur with respect to the
relevant class of securities prior to the closing date. If a material change
does occur with respect to such class, our contract will terminate, by its
terms, without any further obligation or liability between us (the "Automatic
Termination"). If an Automatic Termination occurs, we will provide you with
revised offering materials reflecting the material change and give you an
opportunity to purchase such class. To indicate your interest in purchasing the
class, you must communicate to us your desire to do so within such timeframe as
may be designated in connection with your receipt of the revised offering
materials.
Mortgage Pass-Through Certificates, Series 2007-1
Banc of America Alternative Loan Trust 2007-1
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[Bank of America logo]
February 23, 2007
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
DISCLAIMER
----------
This free writing prospectus is being delivered to you solely to provide you
with information about the offering of the securities referred to in this free
writing prospectus and to solicit an offer to purchase the securities, when, as
and if issued. Any such offer to purchase made by you will not be accepted and
will not constitute a contractual commitment by you to purchase any of the
securities until we have accepted your offer to purchase securities. You may
withdraw your offer to purchase securities at any time prior to our acceptance
of your offer.
The information in this free writing prospectus supersedes information contained
in any prior similar free writing prospectus relating to these securities prior
to the time of your commitment to purchase.
This free writing prospectus is not an offer to sell or solicitation of an offer
to buy these securities in any state where such offer, solicitation or sale is
not permitted.
IRS CIRCULAR 230 NOTICE
THIS FREE WRITING PROSPECTUS IS NOT INTENDED OR WRITTEN TO BE USED,
AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING U.S. FEDERAL, STATE
OR LOCAL TAX PENALTIES. THIS FREE WRITING PROSPECTUS IS WRITTEN AND
PROVIDED BY THE UNDERWRITER IN CONNECTION WITH THE PROMOTION OR
MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN. INVESTORS
SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN
INDEPENDENT TAX ADVISOR.
The information contained in this free writing prospectus should be read in
conjunction with the information contained in the Depositor's most recent base
prospectus and the information provided by Banc of America Securities LLC (the
"Underwriter"). The Depositor's most recent base prospectus referred to in this
free writing prospectus is the base prospectus dated December 27, 2006 attached
to the prospectus supplement dated December 27, 2006 relating to the Banc of
America Alternative Loan Trust 2006-9 Mortgage Pass-Through Certificates, Series
2006-9 filed with the SEC under Rule 424(b)(5) of the Securities Act (SEC File
No. 333-132249-11). You should carefully read this free writing prospectus and
the base prospectus, as well as the information provided by the Underwriter,
before you make any investment decision. Capitalized terms that are used but not
defined in this free writing prospectus have the meaning given to those terms in
the base prospectus.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW THIS DOCUMENT ARE NOT
APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR
OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION
BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Transaction.................. Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series
2007-1
Issuing Entity............... Banc of America Alternative Loan Trust 2007-1
Depositor.................... Banc of America Mortgage Securities, Inc.
Underwriter.................. Banc of America Securities LLC
Sponsor and Servicer......... Bank of America, National Association
Trustee...................... Wells Fargo Bank, N.A.
Rating Agencies.............. At least two of Standard & Poor's, Moody's
and/or Fitch Ratings will rate the offered Senior
Certificates. At least one of the above Rating
Agencies will rate the offered Subordinate
Certificates.
Senior Certificates.......... The Senior Certificates will consist of two or
more classes of certificates, one of which will be
the residual certificate. Each group may also
contain a class of ratio strip certificates. One
or more classes of certificates may be comprised
of two or more components. The components of a
class are not severable. The Senior Certificates
(or in the case of a class of Senior Certificates
comprised of components, the components) may be
divided into two or more groups in which case each
group will have a corresponding group of
Subordinate Certificates which may or may not be
shared with one or more other groups of Senior
Certificates.
Senior Non-PO Certificates... The Senior Certificates (other than any Ratio
Strip Certificates or components thereof).
Subordinate Certificates..... If the Senior Certificates are divided into
multiple groups, the Subordinate Certificates may
or may not consist of multiple groups. If there is
only one group of Subordinate Certificates, the
Subordinate Certificates will support all of the
Senior Certificates. If there are multiple groups
of Subordinate Certificates, each group will
support one or more groups of Senior Certificates.
Each class of Subordinate Certificates is also
subordinated to those classes of Subordinate
Certificates within its group, if any, higher in
order of payment priority.
Offered Certificates......... Senior Certificates and Subordinate Certificates
rated BBB- or Baa3 or better
Expected Closing Date........ March 30, 2007
Banc of America Securities LLC 3
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Expected Investor
Closing Date................. March 30, 2007
Distribution Date............ 25th of each month, or the next succeeding
business day (First Distribution Date: April 25,
2007)
Cut-off Date................. March 1, 2007
Determination Date........... For any Distribution Date, the 16th day of the
month in which the Distribution Date occurs or, if
that day is not a business day, the immediately
preceding business day.
Record Date.................. For any Distribution Date, the close of business
on the last business day of the month preceding
the month of that Distribution Date.
Day Count.................... 30/360
Exchangeable
Certificates and
Exchangeable REMIC
Certificates................. If indicated in the prospectus supplement, a class
or combination of classes of exchangeable REMIC
certificates may be exchangeable for certain class
or classes of exchangeable certificates in certain
combinations specified in the prospectus
supplement.
Clearing..................... DTC, Clearstream and Euroclear.
Denominations:
Original Incremental
Certificate Form Minimum Denominations Denominations
---------------------------------------------------------------------------
Senior Certificates (other than Book Entry $1,000 $1
any Principal Only Certificates,
Interest Only Certificates and
Special Retail Certificates)
Interest Only Certificates Book Entry $1,000,000 (notional $1 or N/A
amount) or size of class, if
less than $1,000,000
Special Retail Certificates Book Entry $1,000 $1,000
Principal Only Certificates and Book Entry $25,000 $1
Subordinate Certificates
Banc of America Securities LLC 4
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
SMMEA Eligibility............ The Senior Certificates and the most senior class
or classes of Subordinate Certificates are
expected to constitute "mortgage related
securities" for purposes of SMMEA.
ERISA Eligibility............ A fiduciary or other person acting on behalf of
any employee benefit plan or arrangement,
including an individual retirement account,
subject to the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), the Code or any
federal, state or local law ("Similar Law") which
is similar to ERISA or the Code (collectively, a
"Plan") should carefully review with its legal
advisors whether the purchase or holding of an
Offered Certificate could give rise to a
transaction prohibited or not otherwise
permissible under ERISA, the Code or Similar Law.
The U.S. Department of Labor has extended to Banc
of America Securities LLC an administrative
exemption (the "Exemption") from certain of the
prohibited transaction rules of ERISA and the
related excise tax provisions of Section 4975 of
the Code with respect to the initial purchase, the
holding and the subsequent resale by certain Plans
of certificates in pass-through trusts that
consist of certain receivables, loans and other
obligations that meet the conditions and
requirements of the Exemption.
The Exemption may cover the acquisition and
holding of the Senior Certificates (other than the
residual certificates) by the Plans to which it
applies provided that all conditions of the
Exemption other than those within the control of
the investors are met. In addition, as of the date
hereof, there is no single mortgagor that is the
obligor on 5% of the initial balance of the
Mortgage Pool.
If there are Mortgage Loans with loan-to-value
ratios in excess of 100% in the Mortgage Pool or
in a loan group within the Mortgage Pool, the
Exemption will not cover the acquisition and
holding of the related offered Super Senior
Support or Subordinate Certificates.
Prospective Plan investors should consult with
their legal advisors concerning the impact of
ERISA, the Code and Similar Law, the applicability
of PTE 83-1 and the Exemption, and the potential
consequences in their specific circumstances,
prior to making an investment in the Offered
Certificates. Moreover, each Plan fiduciary should
determine whether under the governing plan
instruments and the applicable fiduciary standards
of investment prudence and diversification, an
investment in the Offered Certificates is
appropriate for the Plan, taking into account the
overall investment policy of the Plan and the
composition of the Plan's investment portfolio.
Banc of America Securities LLC 5
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Tax Structure................ For federal income tax purposes, the Trust will
be treated as one or more "real estate mortgage
investment conduits" (each, a "REMIC").
o The Senior Certificates (other than the
residual certificate and any exchangeable
certificates) and the Subordinate Certificates
will constitute "regular interests" in a REMIC
and will be treated as newly-originated debt
instruments for most federal income tax
purposes.
o Generally, for a class of component
certificates, each component, rather than the
class itself, will constitute a regular
interest in a REMIC.
o The residual certificate will represent the
sole "residual interest" in each REMIC.
You must report income received on your Offered
Certificates as it accrues from Distribution Date
to Distribution Date, even if it is before such
income is distributed in cash to you.
Certain classes of Offered Certificates may be
issued with "original issue discount." If your
class of Offered Certificates is issued with
original issue discount, you must report original
issue discount income over the life of your
Certificate, often well before such income is
distributed in cash to you.
If you hold an Offered Certificate that has the
benefit of a yield maintenance agreement and is
entitled to certain payments from a reserve
account, you will be treated as owning two assets,
a REMIC regular interest and the right to receive
payments from the reserve fund and will be
required to account separately for each of these
assets for federal income tax purposes.
If you hold an Offered Certificate that is an
exchangeable certificate, you should be aware that
the arrangement under which any exchangeable
certificates are created will be classified as a
grantor trust and each class of exchangeable
certificates so created will represent beneficial
ownership of an interest in each related
exchangeable REMIC certificate.
Optional Termination Date.... On any Distribution Date on which the aggregate
Stated Principal Balance of the Mortgage Loans is
less than 10% of the initial aggregate unpaid
principal balance of the Mortgage Loans as of the
Cut-off Date, the Depositor may, at its option,
subject to certain conditions, purchase the
Mortgage Loans, which would effect an early
retirement of the Certificates.
Banc of America Securities LLC 6
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
If the Mortgage Loans are divided into multiple
loan groups with more than one set of Subordinate
Certificates, the Depositor may, at its option,
subject to certain conditions, purchase the
Mortgage Loans in one or some of the loan groups,
which would effect an early retirement of only the
related Certificates.
The Pooling Agreement........ The Certificates will be issued pursuant to a
Pooling and Servicing Agreement (the "Pooling
Agreement") to be dated the Closing Date, among
the Depositor, the Servicer and the Trustee.
The Mortgage Pool............ The "Mortgage Pool" will consist of fixed interest
rate, fully-amortizing mortgage loans (the
"Mortgage Loans") secured by first liens on one-
to four-family residential properties. All of the
Mortgage Loans were originated or acquired by Bank
of America, National Association, which is an
affiliate of the Depositor and Banc of America
Securities LLC. In addition, certain of the
Mortgage Loans were originated using underwriting
standards that are different from, and in certain
respects, less stringent than the general
underwriting standards of Bank of America,
National Association. See "The Mortgage Loan
Programs--Mortgage Loan Underwriting" in the base
prospectus.
The Mortgage Pool may be divided into multiple
loan groups.
The Mortgage Loans........... The Mortgage Loans consist of fixed interest rate,
fully amortizing mortgage loans secured by first
liens on one- to four-family residential
properties. Substantially all of the Mortgage
Loans will have original terms to stated maturity
of approximately 10 to 40 years. Borrowers are
permitted to prepay their Mortgage Loans, in whole
or in part, at any time. If indicated in the
Collateral Summary at the end of this Free Writing
Prospectus, certain of the Mortgage Loans may be
subject to prepayment premiums. Accordingly, the
actual date on which any Mortgage Loan is paid in
full may be earlier than the stated maturity date
due to unscheduled payments of principal. See the
Collateral Summary at the end of this Free Writing
Prospectus for more information about the Mortgage
Loans.
Yield Maintenance
Agreements................... The Trustee on behalf of the Trust may enter into
one or more yield maintenance agreements (each, a
"Yield Maintenance Agreement") with one or more
counterparties (each, a "Counterparty") for the
benefit of one or more classes. With respect to
each Yield Maintenance Agreement for any
Distribution Date (other than the initial
Distribution Date) if LIBOR, as calculated for the
Interest Accrual Period related to such
Distribution Date, exceeds a designated strike
percentage, the Counterparty will be obligated to
pay to the Trustee, for deposit into the related
Reserve Fund, an amount equal to the product of
(a) the amount by which (i) the lesser of LIBOR
and a designated maximum
Banc of America Securities LLC 7
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
percentage exceeds (ii) the designated strike
percentage, (b) the lesser of the applicable Class
Balance(s) and related notional amount as set
forth for such Distribution Date in the related
Yield Maintenance Agreement and (c) one-twelfth.
Pursuant to the Pooling Agreement, the Trustee
will establish a separate trust account (the
"Reserve Fund") for deposit of any payments that
it may receive under a Yield Maintenance
Agreement. Each Reserve Fund is part of the trust
fund but will not be an asset of any REMIC.
Amounts on deposit in a Reserve Fund will be used
to make certain payments on a specified Class or
Classes of Certificates that have the benefit of a
Yield Maintenance Agreement.
Compensating Interest........ Pursuant to the Pooling Agreement, the aggregate
Servicing Fee payable to the Servicer for any
month will be reduced (but not below zero) by an
amount equal to the lesser of (i) the aggregate of
the Prepayment Interest Shortfalls for such
Distribution Date and (ii) one-twelfth of 0.25% of
the aggregate Stated Principal Balance of the
Mortgage Loans as of the due date in the month
preceding the month of such Distribution Date
(such amount, the "Compensating Interest").
If a group of Subordinate Certificates supports
multiple groups of Senior Certificates,
Compensating Interest will be determined on an
aggregate basis with respect to all related loan
groups. If a group of Subordinate Certificates
supports one group of Senior Certificates,
Compensating Interest will be determined for the
related loan group.
Advances..................... Subject to certain limitations, the Servicer will
be required pursuant to the Pooling Agreement to
advance (any such advance, an "Advance") prior to
each Distribution Date an amount equal to the
aggregate of payments of principal and interest
(net of the Servicing Fee) which were due on the
related due date on the Mortgage Loans and which
were delinquent on the related Determination Date.
Advances made by the Servicer will be made from
its own funds or funds available for future
distribution. The obligation to make an Advance
with respect to any Mortgage Loan will continue
until the ultimate disposition of the REO Property
or Mortgaged Property relating to such Mortgage
Loan.
Interest Accrual............. Interest will accrue on the Certificates during
each one-month period (i) ending on the last day
of the month preceding the month in which each
Distribution Date occurs (each, a "Regular
Interest Accrual Period") or (ii) commencing on
the 25th day of the month preceding the month in
which each Distribution Date occurs and ending on
the 24th day of the month in which each
Distribution Date occurs (each, a "LIBOR Based
Interest Accrual Period" or "No Delay Interest
Banc of America Securities LLC 8
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Accrual Period" and together with a Regular
Interest Accrual Period, an "Interest Accrual
Period"). The initial Regular Interest Accrual
Period will be deemed to have commenced on March
1, 2007 and any initial LIBOR Based Interest
Accrual Period or No Delay Interest Accrual Period
will be deemed to have commenced on March 25,
2007.
On each Distribution Date, to the extent of the
applicable Pool Distribution Amount or Amounts,
each class of interest-bearing Certificates will
be entitled to receive interest (as to each such
class, the "Interest Distribution Amount") with
respect to the related Interest Accrual Period.
The Interest Distribution Amount for any
interest-bearing class of Certificates will be
equal to the sum of (i) interest accrued during
the related Interest Accrual Period at the
applicable pass-through rate on the related Class
Balance or notional amount and (ii) the sum of the
amounts, if any, by which the amount described in
clause (i) above on each prior Distribution Date
exceeded the amount actually distributed in
respect of interest on such prior Distribution
Dates and not subsequently distributed.
The interest entitlement described in clause (i)
of the Interest Distribution Amount for each class
of interest-bearing Senior Certificates and each
class of Subordinate Certificates will be reduced
by the amount of Net Interest Shortfalls for the
related Mortgage Loans for such Distribution Date.
Allocations of the interest portion of Realized
Losses on the Mortgage Loans in a loan group are
allocated first to the related Subordinate
Certificates in reverse order of payment priority
will result from the priority of distributions
first to the related Senior Certificates and then
to the classes of related Subordinate Certificates
in numerical order of the applicable Pool
Distribution Amount as described below under
"Priority of Distributions." After the date on
which the aggregate Class Balance of the related
Subordinate Certificates has been reduced to zero,
the interest-bearing related Senior Certificates
will bear the interest portion of any Realized
Losses on such Mortgage Loans pro rata based on
the interest entitlement described in clause (i)
of the applicable Interest Distribution Amount.
Distributions to the
Subordinate Certificates..... On each Distribution Date, each class of
Subordinate Certificates that is entitled to
receive a principal distribution will receive its
pro rata share (based on the Class Balances of all
the Subordinate Certificates (or the Subordinate
Certificates in the same group, if there is more
than one group of Subordinate Certificates) that
are entitled to receive a principal distribution)
of the Subordinate Principal Distribution
Amount(s), to the extent that the remaining Pool
Distribution
Banc of America Securities LLC 9
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Amount(s) are sufficient therefor. With respect to
each class of Subordinate Certificates, if on any
Distribution Date the Fractional Interest is less
than the Fractional Interest for that class on the
Closing Date, no classes of Subordinate
Certificates in the same group, if there is more
than one group of Subordinate Certificates, junior
to such class will be entitled to receive a
principal distribution.
Distributions of principal on the Subordinate
Certificates that are entitled to receive a
principal distribution on a Distribution Date will
be made sequentially to each class of Subordinate
Certificates in the order of their payment
priority until each such class has received its
respective pro rata share for the Distribution
Date. However, the Class PO Deferred Amounts will
be paid to the ratio strip components or
certificates from amounts otherwise payable as
principal to the related Subordinate Certificates,
beginning with the amounts otherwise distributable
as principal to the class of related Subordinate
Certificates lowest in order of payment priority.
Shifting Interest Structure.. Additional credit enhancement is provided by the
allocation of the applicable Non-PO Percentages of
principal prepayments on the Mortgage Loans in the
Mortgage Pool or a loan group in the Mortgage Pool
to the related Senior Non-PO Certificates for the
first five years and the disproportionately
greater allocation of prepayments to such Senior
Non-PO Certificates over the following four years.
The disproportionate allocation of the applicable
Non-PO Percentages of prepayments on the Mortgage
Loans in the Mortgage Pool or a loan group in the
Mortgage Pool will accelerate the amortization of
those Senior Certificates relative to the
amortization of the Subordinate Certificates. As a
result, the credit support percentage for the
Senior Certificates should be maintained and may
be increased during the first nine years.
Allocation of Losses......... On each Distribution Date, the applicable PO
Percentage of any Realized Loss on a Discount
Mortgage Loan will be allocated to the ratio strip
certificate or ratio strip component of the
related group until its Class Balance or principal
balance is reduced to zero. Such allocation will
be effected on each Distribution Date by reducing
the Class Balance of the ratio strip certificate
or principal balance of the ratio strip component
of the related group if and to the extent that
such balance (after taking into account the amount
of all distributions to be made on such
Distribution Date) exceeds the Adjusted Pool
Amount (PO Portion) for such Distribution Date.
The amount of any such Realized Loss allocated to
a ratio strip certificate or ratio strip component
of the related group will be treated as a "Class
PO Deferred Amount." To the extent funds are
available on such Distribution Date or on any
future Distribution Date from amounts that
Banc of America Securities LLC 10
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
would otherwise be allocable to the related
Subordinate Principal Distribution Amount or
Amounts, the Class PO Deferred Amounts for the
ratio strip certificate or ratio strip component
of the related group will be paid on such ratio
strip certificate or ratio strip component of the
related group prior to distributions of principal
on the related Subordinate Certificates. Payments
of the Class PO Deferred Amounts will be made from
the principal payable to the related Subordinate
Certificates beginning with the principal payable
to the class of Subordinate Certificates lowest in
order of payment priority. Any distribution in
respect of unpaid Class PO Deferred Amounts for a
ratio strip certificate or ratio strip component
of the related group will not further reduce the
principal balance of such ratio strip certificate
or ratio strip component of the related group. The
Class PO Deferred Amounts will not bear interest.
The Class Balance of the class of related
Subordinate Certificates then outstanding lowest
in the order of payment priority will be reduced
by the amount of any payments in respect of Class
PO Deferred Amounts for the ratio strip
certificate or ratio strip component of the
related group. Any excess of these Class PO
Deferred Amounts over the Class Balance of that
class will be allocated to the next most
subordinate class of related Subordinate
Certificates to reduce its Class Balance and so
on, as necessary.
On each Distribution Date, the applicable Non-PO
Percentage of any Realized Loss will be allocated
first to the related Subordinate Certificates in
reverse order of payment priority (beginning with
the class of related Subordinate Certificates then
outstanding lowest in order of payment priority),
in each case until the Class Balance of such class
of Certificates has been reduced to zero, and then
to the Senior Non-PO Certificates or to the Senior
Non-PO Certificates of the related group, if there
are multiple groups of Senior Non-PO Certificates
pro rata based on their respective Class Balances.
Such allocation will be effected on each such
Distribution Date by reducing the Class Balance of
the class of related Subordinate Certificates then
outstanding lowest in order of payment priority if
and to the extent that the aggregate of the Class
Balances of all classes of Senior Non-PO
Certificates or the Senior Non-PO Certificates in
a group and the related Subordinate Certificates
(after taking into account the amount of all
distributions to be made on such Distribution
Date) exceeds the Adjusted Pool Amount (Non-PO
Portion) or sum of the Adjusted Pool Amounts
(Non-PO Portion) for such Distribution Date.
After the date on which the aggregate Class
Balance of the related Subordinate Certificates
has been reduced to zero, on each Distribution
Date, the aggregate of the Class Balances of all
classes of Senior Non-
Banc of America Securities LLC 11
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
PO Certificates or all Senior Non-PO Certificates
of a group then outstanding will be reduced if and
to the extent that such aggregate Class Balance
(after taking into account the amount of all
distributions to be made on such Distribution
Date) exceeds the Adjusted Pool Amount (Non-PO
Portion) for such Distribution Date. The amount of
any such reduction will be allocated among the
Senior Non-PO Certificates or Senior Non-PO
Certificates of such group pro rata based on their
respective Class Balances (or their initial Class
Balances, if lower, in the case of a class of
Accrual Certificates).
After the date on which the aggregate Class
Balance of the related Subordinate Certificates
has been reduced to zero, the Class Balance of any
class of Super Senior Support Certificates will be
reduced not only by the principal portion of
Realized Losses allocated to such class as
provided in the preceding paragraph, but also by
the portion allocated to the related class or
classes of Super Senior Certificates.
Cross-Collateralization...... If one group of Subordinate Certificates support
multiple groups of Senior Certificates, on each
Distribution Date prior to the date on which the
aggregate Class Balance of such Subordinate
Certificates has been reduced to zero but on or
after the date on which the Class Balances of the
Senior Non-PO Certificates of a group have been
reduced to zero, amounts otherwise distributable
as principal payments on such Subordinate
Certificates will be paid as principal to the
remaining classes of Senior Non-PO Certificates of
each group supported by such Subordinate
Certificates together with the Senior Principal
Distribution Amount(s) in accordance with the
principal payment priorities provided that on such
Distribution Date (a) the Aggregate Subordinate
Percentage for such Distribution Date is less than
twice the initial Aggregate Subordinate Percentage
or (b) the average outstanding principal balance
of the Mortgage Loans (including, for this
purpose, any Mortgage Loan in foreclosure, any REO
Property and any Mortgage Loan for which the
mortgagor has filed for bankruptcy after the
Closing Date) delinquent 60 days or more over the
last six months as a percentage of the aggregate
Class Balance of the Subordinate Certificates is
greater than or equal to 50%. If the Senior Non-PO
Certificates of two or more groups remain
outstanding, the distributions described above
will be made to such Senior Certificates of such
groups, pro rata, in proportion to the aggregate
Class Balance of such Senior Certificates.
The "Aggregate Subordinate Percentage" for any
Distribution Date will be the percentage equal to
the aggregate Class Balance of the Subordinate
Certificates divided by the related aggregate Pool
Principal Balance (Non-PO Portion).
Banc of America Securities LLC 12
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
In addition, if on any Distribution Date, after
giving effect to the preceding paragraph, the
aggregate Class Balance of the Senior Non-PO
Certificates after giving effect to distributions
to be made on such Distribution Date is greater
than the Adjusted Pool Amount (Non-PO Portion)
(any such group, the "Undercollateralized Group"
and any such excess, the "Undercollateralized
Amount"), all amounts otherwise distributable as
principal on the Subordinate Certificates, in
reverse order of their payment priority, will be
paid as principal to the Senior Non-PO
Certificates of the Undercollateralized Group
together with the Senior Principal Distribution
Amount(s) in accordance with the principal payment
priorities until the aggregate Class Balance of
the Senior Non-PO Certificates of the
Undercollateralized Group equals the Adjusted Pool
Amount (Non-PO Portion). If two or more groups are
Undercollateralized Groups, the distributions
described above will be made, pro rata, in
proportion to the amount by which the aggregate
Class Balance of the Senior Non-PO Certificates of
each such group exceeds the related Pool Principal
Balance (Non-PO Portion).
The amount of any unpaid interest shortfall
amounts with respect to the Undercollateralized
Group (including any interest shortfall amount for
such Distribution Date) will be paid to the
Undercollateralized Group, including the interest
only component of such group, if any, prior to the
payment of any Undercollateralized Amount from
amounts otherwise distributable as principal on
the Subordinate Certificates, in reverse order of
their payment priority.
Adjusted Pool Amount......... The "Adjusted Pool Amount" of the Mortgage Pool or
a loan group in the Mortgage Pool will equal the
aggregate unpaid principal balance of the Mortgage
Loans in the Mortgage Pool or a loan group in the
Mortgage Pool as of the Cut-off Date minus the sum
of (i) all amounts in respect of principal
received in respect of such Mortgage Loans
(including amounts received as Advances, principal
prepayments and Liquidation Proceeds in respect of
principal) and distributed on the Certificates on
such Distribution Date and all prior Distribution
Dates and (ii) the principal portion of all
Realized Losses (other than debt service
reductions) incurred on such Mortgage Loans from
the Cut-off Date through the end of the month
preceding the month in which such Distribution
Date occurs.
Adjusted Pool Amount
(PO Portion)................. The "Adjusted Pool Amount (PO Portion)" of the
Mortgage Pool or a loan group in the Mortgage Pool
will equal the sum as to each Mortgage Loan in the
Mortgage Pool or a loan group in the Mortgage Pool
as of the Cut-off Date of the product of (A) the
PO Percentage for such Mortgage Loan and (B) the
principal balance of such Mortgage Loan as of the
Cut-off Date less the sum of (i) all amounts in
respect of principal received in respect of such
Mortgage Loan (including
Banc of America Securities LLC 13
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
amounts received as Advances, principal
prepayments and Liquidation Proceeds in respect of
principal) and distributed on the Certificates on
such Distribution Date and all prior Distribution
Dates and (ii) the principal portion of any
Realized Loss (other than a debt service
reduction) incurred on such Mortgage Loan from the
Cut-off Date through the end of the month
preceding the month in which such Distribution
Date occurs.
Adjusted Pool Amount
(Non-PO Portion)............. The "Adjusted Pool Amount (Non-PO Portion)" of
the Mortgage Pool or a loan group in the Mortgage
Pool will equal the difference between the
Adjusted Pool Amount of the Mortgage Pool or a
loan group in the Mortgage Pool and the Adjusted
Pool Amount (PO Portion) of the Mortgage Pool or a
loan group in the Mortgage Pool.
Class Balance................ The "Class Balance" of a class of Certificates
at any time will equal (a) its initial Class
Balance or in the case of a class of Exchangeable
REMIC Certificates or Exchangeable Certificates,
the portion of the maximum initial Class Balance
then represented by the outstanding Certificates
of such class of the maximum initial Class Balance
less (i) all distributions of principal made to
such class, and (ii) losses allocated to such
class plus (b) in the case of a class of Accrual
Certificates, any amounts added to such Class
Balance as a result of the application of the
accrual distribution amount.
Fractional Interest.......... The "Fractional Interest" with respect to any
Distribution Date and each class of Subordinate
Certificates will equal (i) the aggregate of the
Class Balances immediately prior to such
Distribution Date of all classes of Subordinate
Certificates in the same group that have higher
numerical class designations than such class,
divided by (ii) the aggregate Pool Principal
Balance (Non-PO Portion) (if there is only one
group of Subordinate Certificates) or the related
Pool Principal Balance (Non-PO Portion) or sum of
the related Pool Principal Balance (Non-PO
Portion) (if there is more than one group of
Subordinate Certificates).
Net Interest Shortfall....... With respect to any Distribution Date, the "Net
Interest Shortfall" is equal to the sum of (i) the
shortfall in interest received with respect to any
Mortgage Loan as a result of a Relief Act
Reduction and (ii) any Non-Supported Interest
Shortfalls. Net Interest Shortfalls on any
Distribution Date will be allocated pro rata among
all such classes of interest-bearing Senior
Certificates or if there are Crossed Groups, the
interest-bearing Senior Certificates of the
Crossed Groups and each class of related
Subordinate Certificates, based on the amount of
interest accrued on each such class of
Certificates on such Distribution
Banc of America Securities LLC 14
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Date before taking into account any reduction in
such amounts resulting from such Net Interest
Shortfalls.
Net Mortgage Interest Rate... The "Net Mortgage Interest Rate" of a Mortgage
Loan is the excess of its mortgage interest rate
over the sum of the servicing fee rate (which is .
25%) and the trustee fee rate (which is .0075%).
Non-PO Percentage............ The "Non-PO Percentage" with respect to any
Mortgage Loan in the Mortgage Pool or loan group
in the Mortgage Pool with a Net Mortgage Interest
Rate as of the Cut-off Date less than a certain
rate (each such Mortgage Loan, a "Discount
Mortgage Loan") will be equal to the Net Mortgage
Interest Rate as of the Cut-off Date divided by
such applicable rate. If there are multiple loan
groups in the Mortgage Pool, this rate may be the
same for each loan group or may differ for one or
more loan groups. The Non-PO Percentage with
respect to any Mortgage Loan in the Mortgage Pool
or loan group in the Mortgage Pool with a Net
Mortgage Interest Rate as of the Cut-off Date
equal to or greater than the applicable rate will
be 100%. The "PO Percentage" for any Discount
Mortgage Loan will be equal to 100% minus the
Non-PO Percentage for such Mortgage Loan. If there
are no ratio strip certificates in a group, the
Non-PO Percentage for each Mortgage Loan in the
related loan group will be 100% and the PO
Percentage for each Mortgage Loan in such loan
group will be 0%.
Any Mortgage Loan with a Net Mortgage Interest
Rate as of the Cut-off Date greater than or equal
to the applicable rate for the Mortgage Pool or
the loan group in the Mortgage Pool is a "Premium
Mortgage Loan."
Non-PO Principal Amount...... The "Non-PO Principal Amount" for any Distribution
Date and the Mortgage Pool or any loan group in
the Mortgage Pool will equal the sum of the
applicable Non-PO Percentage of:
(a) all monthly payments of principal due on each
Mortgage Loan in the Mortgage Pool or loan
group in the Mortgage Pool on the related due
date;
(b) the principal portion of the purchase price
(net of unreimbursed Advances and other
amounts as to which the Servicer is entitled
to be reimbursed pursuant to the Pooling
Agreement) of each Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage
Pool that was repurchased by the Depositor
pursuant to the Pooling Agreement during the
calendar month preceding the month of that
Distribution Date;
Banc of America Securities LLC 15
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
(c) amounts received with respect to such
Distribution Date as a substitution
adjustment amount (net of unreimbursed
Advances and other amounts as to which the
Servicer is entitled to be reimbursed
pursuant to the Pooling Agreement) in
connection with a Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage
Pool received during the calendar month
preceding the month of that Distribution
Date;
(d) any Liquidation Proceeds (net of unreimbursed
expenses and unreimbursed Advances, if any)
allocable to recoveries of principal of the
Mortgage Loans in the Mortgage Pool or loan
group in the Mortgage Pool that have not yet
been liquidated received during the calendar
month preceding the month of that
Distribution Date;
(e) with respect to each Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage
Pool that was liquidated during the calendar
month preceding the month of that
Distribution Date, the amount of the
Liquidation Proceeds (other than any profits
retained by the Servicer in connection with
the foreclosure and net of unreimbursed
expenses and unreimbursed Advances, if any)
allocable to principal received with respect
to that Mortgage Loan; and
(f) all partial and full principal prepayments on
the Mortgage Loans in the Mortgage Pool or
loan group in the Mortgage Pool by mortgagors
received during the calendar month preceding
the month of that Distribution Date.
The amounts described in clauses (a) through (d)
are referred to as "Scheduled Principal Payments."
The amounts described in clauses (e) and (f) are
referred to as "Unscheduled Principal Payments."
Non-Supported
Interest Shortfall........... With respect to any Distribution Date, the
"Non-Supported Interest Shortfall" is the amount
by which the aggregate of Prepayment Interest
Shortfalls for the Mortgage Loans in the Mortgage
Pool or the Mortgage Loans in any Crossed Loan
Groups during the calendar month preceding the
month of such Distribution Date exceeds the
applicable Compensating Interest for such period.
Notional Amount.............. The "Notional Amount" of any Interest Only
Certificates (or any components of an Interest
Only Certificates) will be equal to either (I) the
product of (i) the aggregate of the Stated
Principal Balances of the Premium Mortgage Loans
in the Mortgage Pool or loan group as of the due
date in the month preceding the month of such
Distribution
Banc of America Securities LLC 16
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Date and (ii) a fraction, (a) the numerator of
which is equal to the weighted average of the Net
Mortgage Interest Rates of the these Mortgage
Loans (based on the Stated Principal Balances of
these Mortgage Loans as of the due date in the
month preceding the month of such Distribution
Date) minus a specified percentage and (b) the
denominator of which is equal to a specified
percentage or (II) a percentage or all of the
Class Balance(s) of another class or classes.
Pool Distribution Amount..... The "Pool Distribution Amount" with respect to any
Distribution Date will be determined by reference
to amounts received and expenses incurred in
connection with the Mortgage Loans in the Mortgage
Pool or any loan group in the Mortgage Pool and
will be equal to the sum of:
(i) all scheduled installments of interest (net
of the related Servicing Fee) and principal
due on such Mortgage Loans on the due date
in the month in which such Distribution Date
occurs and received prior to the related
Determination Date, together with any
Advances in respect thereof and any
Compensating Interest allocable to such
Mortgage Loans;
(ii) all proceeds of any primary mortgage
guaranty insurance policies and any other
insurance policies with respect to such
Mortgage Loans, to the extent such proceeds
are not applied to the restoration of the
related mortgaged property or released to
the mortgagor in accordance with the
Servicer's normal servicing procedures and
all other cash amounts received and retained
in connection with the liquidation of
defaulted Mortgage Loans in the Mortgage
Pool or any loan group in the Mortgage Pool,
by foreclosure or otherwise (collectively,
"Liquidation Proceeds"), during the calendar
month preceding the month of such
Distribution Date (in each case, net of
unreimbursed expenses incurred in connection
with a liquidation or foreclosure and
unreimbursed Advances, if any);
(iii) all partial or full prepayments received on
such Mortgage Loans during the calendar
month preceding the month of such
Distribution Date; and
(iv) amounts received with respect to such
Distribution Date as a substitution
adjustment amount or purchase price in
respect of any deleted Mortgage Loan in the
Mortgage Pool or any loan group in the
Mortgage Pool or amounts received in
connection with the optional termination of
the Trust or a portion of the Trust as of
such Distribution Date, reduced by amounts
in reimbursement for Advances previously
made and other
Banc of America Securities LLC 17
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
amounts as to which the Servicer is entitled
to be reimbursed pursuant to the Pooling
Agreement.
Pool Principal Balance....... The "Pool Principal Balance" for the Mortgage Pool
or a loan group in the Mortgage Pool with respect
to any Distribution Date equals the aggregate
Stated Principal Balances of the Mortgage Loans in
the Mortgage Pool or loan group in the Mortgage
Pool outstanding on the due date in the month
preceding the month of such Distribution Date.
Pool Principal Balance
(Non-PO Portion)............. The "Pool Principal Balance (Non-PO Portion)"
for the Mortgage Pool or a loan group in the
Mortgage Pool and any Distribution Date equals the
sum of the product, for each Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage Pool,
of the Non-PO Percentage of such Mortgage Loan
multiplied by its Stated Principal Balance on the
due date in the month preceding the month of such
Distribution Date.
Prepayment
Interest Shortfall........... A "Prepayment Interest Shortfall" on a Mortgage
Loan is equal to the difference between (x) 30
days' interest at the mortgage interest rate (less
the servicing fee rate) on the amount of the
prepayment on such Mortgage Loan minus (y) the
amount of interest actually paid by the related
mortgagor on the amount of such prepayment during
the preceding month.
Realized Loss................ In general, a "Realized Loss" means, (a) with
respect to a Mortgage Loan that has been
liquidated, the amount by which the remaining
unpaid principal balance of the Mortgage Loan
exceeds the amount of proceeds from the
liquidation applied to the principal balance of
the related Mortgage Loan and (b) losses due to
the bankruptcy of the mortgagor.
Relief Act Reduction......... A "Relief Act Reduction" is a reduction in the
amount of monthly interest payment on a Mortgage
Loan pursuant to the Servicemembers Civil Relief
Act or similar state legislation.
REO Property................. An "REO Property" is a Mortgaged Property that
has been acquired by the Trust through foreclosure
or grant of a deed in lieu of foreclosure.
Senior Percentage............ The Senior Percentage for the Mortgage Pool or
loan group in the Mortgage Pool will equal (i) the
aggregate Class Balance of the related Senior
Non-PO Certificates immediately prior to such
date, divided by (ii) the Pool Principal Balance
(Non-PO Portion) for the Mortgage Pool or loan
group in the Mortgage Pool for such date.
Banc of America Securities LLC 18
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Senior Prepayment
Percentage................... For the following Distribution Dates, will be as
follows:
Distribution Date Senior Prepayment Percentage
------------------------- ------------------------------------------
April 2007 through 100%;
March 2012
April 2012 through the applicable Senior Percentage plus, 70%
March 2013 of the applicable Subordinate Percentage;
April 2013 through the applicable Senior Percentage plus, 60%
March 2014 of the applicable Subordinate Percentage;
April 2014 through the applicable Senior Percentage plus, 40%
March 2015 of the applicable Subordinate Percentage;
April 2015 through the applicable Senior Percentage plus, 20%
March 2016 of the applicable Subordinate Percentage;
April 2016 and thereafter the applicable Senior Percentage;
provided, however, that (A) if on any Distribution
Date the percentage equal to (x) the aggregate
Class Balances of the Senior Non-PO Certificates
of multiple groups with one set of Subordinate
Certificates (such groups, "Crossed Groups")
divided by (y) the sum of the Pool Principal
Balances (Non-PO Portion) for the loan groups
relating to the Crossed Groups (such loan groups,
the "Crossed Loan Groups" and such percentage, the
"Crossed Group Total Senior Percentage") exceeds
such percentage as of the Closing Date, then the
Senior Prepayment Percentages for the Crossed Loan
Groups for such Distribution Date will equal 100%
and (B) in the case of one group of Senior Non-PO
Certificates with its own set of Subordinate
Certificates or if the Mortgage Pool is not
divided into loan groups, if on any Distribution
Date the Senior Percentage for the Mortgage Pool
or the related loan group of the Mortgage Pool
(the Mortgage Loans in the Mortgage Pool or such
loan group, "Non-Crossed Mortgage Loans") exceeds
such percentage as of the Closing Date, then the
Senior Prepayment Percentage(s) for the Mortgage
Pool or such loan group for such Distribution Date
will equal 100%.
No decrease in the Senior Prepayment Percentages
for the Crossed Loan Groups will occur if the
following occurs as of any Distribution Date as to
which any such decrease applied with respect to
the Crossed Loan Group Mortgage Loans, and no
decrease in the Senior Prepayment Percentage for
the Non-Crossed Mortgage Loans will occur if the
following occurs as of any Distribution Date as to
which any such decrease applied with respect to
the Non-Crossed Mortgage Loans: (i) the
outstanding principal balance of all Mortgage
Loans in the Crossed Loan Groups or all
Non-Crossed Mortgage Loans
Banc of America Securities LLC 19
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
(including, for this purpose, any Mortgage Loans
in foreclosure, any REO Property in such loan
group or loan groups and any Mortgage Loan for
which the mortgagor has filed for bankruptcy after
the Closing Date) delinquent 60 days or more
(averaged over the preceding six-month period), as
a percentage of the aggregate Class Balance of the
related Subordinate Certificates, is equal to or
greater than 50%, or (ii) cumulative Realized
Losses with respect to the Mortgage Loans in the
Crossed Loan Groups or all Non-Crossed Mortgage
Loans exceed the percentages of the aggregate
balance of the related Subordinate Certificates as
of the Closing Date (with respect to the related
Subordinate Certificates, the "Original
Subordinate Principal Balance") indicated below:
% of Original Subordinate
Distribution Date Occurring Principal Balance
------------------------------ -------------------------
April 2012 through March 2013 30%
April 2013 through March 2014 35%
April 2014 through March 2015 40%
April 2015 through March 2016 45%
April 2016 and thereafter 50%
The Subordinate Prepayment Percentage for the
Mortgage Pool or loan group in the Mortgage Pool
for any Distribution Date will equal 100% minus
the Senior Prepayment Percentage for the Mortgage
Pool or such loan group in the Mortgage Pool for
such date.
Senior Principal
Distribution Amount.......... The "Senior Principal Distribution Amount" for the
Mortgage Pool or loan group in the Mortgage Pool
and any Distribution Date will equal the sum of
(i) the Senior Percentage for the Mortgage Pool or
loan group in the Mortgage Pool of the applicable
Non-PO Percentage of Scheduled Principal Payments
for such Distribution Date and (ii) the Senior
Prepayment Percentage for the Mortgage Pool or
loan group in the Mortgage Pool of the applicable
Non-PO Percentage of Unscheduled Principal
Payments for such Distribution Date subject to
certain reductions due to losses.
Stated Principal Balance..... The "Stated Principal Balance" means, as to any
Mortgage Loan and due date, the unpaid principal
balance of such Mortgage Loan as of such due date,
as specified in the amortization schedule at the
time relating thereto (before any adjustment to
such amortization schedule by reason of any
moratorium or similar waiver or grace period),
after giving effect to any previous partial
principal prepayments and Liquidation Proceeds
(net of unreimbursed expenses and unreimbursed
Advances) allocable to principal received and to
the payment of principal due on such due date and
irrespective of any delinquency in payment by the
related mortgagor and after giving effect to any
deficient valuation by a court in connection with
a bankruptcy.
Banc of America Securities LLC 20
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
Subordinate Percentage....... The Subordinate Percentage for the Mortgage Pool
or loan group in the Mortgage Pool for any
Distribution Date will equal 100% minus the Senior
Percentage for such date.
Subordinate Prepayment
Percentage................... The Subordinate Prepayment Percentage for the
Mortgage Pool or loan group in the Mortgage Pool
for any Distribution Date will equal 100% minus
the Senior Prepayment Percentage for the Mortgage
Pool or such loan group in the Mortgage Pool for
such date.
Subordinate Principal
Distribution Amount.......... The "Subordinate Principal Distribution Amount"
for the Mortgage Pool or loan group in the
Mortgage Pool for any Distribution Date will equal
the sum of (i) the Subordinate Percentage for the
Mortgage Pool or loan group in the Mortgage Pool
of the applicable Non-PO Percentage of Scheduled
Principal Payments for such Distribution Date and
(ii) the Subordinate Prepayment Percentage for the
Mortgage Pool or loan group in the Mortgage Pool
of the applicable Non-PO Percentage of Unscheduled
Principal Payments for such Distribution Date.
Exchangeable REMIC
Certificates and
Exchangeable Certificates.... Certain Classes of Offered Certificates identified
as "Exchangeable REMIC Certificates" may be
exchanged in certain allowable combinations (a
"REMIC Combination") for a proportionate interest
in certain related Certificates identified as
"Exchangeable Certificates." All or a portion of
the Exchangeable Certificates in an Exchangeable
Combination may also be exchanged for a
proportionate interest in each class of
Exchangeable REMIC Certificates in the related
REMIC Combination in the same manner. This process
may occur repeatedly.
The classes of Exchangeable REMIC Certificates and
of Exchangeable Certificates that are outstanding
at any given time, and the outstanding Class
Balances and notional amounts, if any, of these
classes, will depend upon any related
distributions of principal, as well as any
exchanges that occur. Exchangeable REMIC
Certificates and Exchangeable Certificates in any
combination may be exchanged only in the
proportion that the maximum initial Class Balances
and notional amounts, if any, of such Certificates
bear to one another as shown in the prospectus
supplement.
Holders of each class of Exchangeable Certificates
in an allowable combination will be the beneficial
owners of a proportionate interest in
Banc of America Securities LLC 21
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
the Exchangeable REMIC Certificates of the related
REMIC Combination.
In the event that Exchangeable REMIC Certificates
are exchanged for an allowable combination of
Exchangeable Certificates, then
o the aggregate principal balance of the
Exchangeable Certificates received in the
exchange will equal the aggregate principal
balance, immediately prior to the exchange,
of the Exchangeable REMIC Certificates so
exchanged; and
o the aggregate amount of interest and
principal payable on each distribution date
with respect to the Exchangeable Certificates
received in the exchange will equal the
aggregate amount of interest and principal
that would have been payable on the
Exchangeable REMIC Certificates so exchanged
if the exchange had not occurred; and
o the aggregate amount of principal and
interest losses and interest shortfalls
allocated to the Exchangeable Certificates
received in the exchange will equal the
aggregate amount of principal and interest
losses and interest shortfalls that would
have been allocated to the Exchangeable REMIC
Certificates so exchanged if the exchange had
not occurred.
Each class of Exchangeable Certificates in an
allowable combination (other than a class of
interest only certificates, if any) will be
entitled to its proportionate share of the
principal distributions that would have been
payable on the Exchangeable REMIC Certificates so
exchanged if the exchange had not occurred. In
addition, each class of Exchangeable Certificates
(other than a class of interest only certificates,
if any) in an allowable combination will bear a
proportionate share of principal losses that would
have been allocated to the Exchangeable REMIC
Certificates so exchanged if the exchange had not
occurred.
Banc of America Securities LLC 22
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Credit Support
- ------------------------------------------------------------------------------
Subordinate Certificates provide credit support for Senior Certificates. If the
Senior Certificates are divided into multiple groups, the Subordinate
Certificates may or may not consist of multiple groups. If there are multiple
groups of Subordinate Certificates, each group will support one or more groups
of Senior Certificates. Additional credit enhancement is provided by the
allocation of the applicable Non-PO Percentages of all principal prepayments on
the applicable Mortgage Loans to the related Senior Non-PO Certificates, subject
to certain exceptions, for the first five years and the disproportionately
greater allocation of prepayments to such Senior Non-PO Certificates over the
following four years. The disproportionate allocation of the applicable Non-PO
Percentages of prepayments on the Mortgage Loans will accelerate the
amortization of those Senior Non-PO Certificates relative to the amortization of
the related Subordinate Certificates. As a result, the credit support percentage
for the Senior Certificates should be maintained and may be increased during the
first nine years. If there is one group of Subordinate Certificates, the initial
credit support percentage for the Senior Certificates (calculated by dividing
the initial Class Balance of the Subordinate Certificates by the aggregate Pool
Principal Balance) is expected to be 7.02% (+/- 50 basis points).
- ------------------------------------------------------------------------------
Priority of Distributions
- ------------------------------------------------------------------------------
Distributions will be made on each Distribution Date from the Pool Distribution
Amount (if the Mortgage Pool is not divided into loan groups) or Amounts (if
there are multiple loan groups, in which case the Senior Certificates and any
components of a group will be paid from the related Pool Distribution Amount) in
the following order of priority:
-------------------------------------------
First, to the classes of Senior
Certificates and component (if any)
entitled to payments of interest, to pay
interest;
-------------------------------------------
|
|
|
V
-------------------------------------------
Second, pro rata, to the Senior Non-PO
Certificates and any ratio strip
component or ratio strip certificates
entitled to payments of principal, to pay
principal;
-------------------------------------------
|
|
|
V
-------------------------------------------
Third, to any ratio strip component or
ratio strip certificates, to pay any
Class PO Deferred Amounts, from amounts
otherwise payable as principal to the
related Subordinate Certificates;
-------------------------------------------
|
|
|
V
-------------------------------------------
Fourth, subject to any
cross-collateralization payments,
sequentially, to each class of
Subordinate Certificates from the related
Pool Distribution Amount or Amounts to
pay interest and principal in the order
of payment priority, until each Class
Balance is zero; and
-------------------------------------------
|
|
|
V
-------------------------------------------
Fifth, to the residual certificate,
any remaining amounts.
-------------------------------------------
Banc of America Securities LLC 23
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
The Sponsor and Servicer..... Bank of America, National Association ("Bank of
America") will serve as the sponsor (the
"Sponsor") and the servicer (the "Servicer") of
the Certificates.
See "The Sponsor," "The Mortgage Loan Programs,"
"Servicing of the Mortgage Loans" and "The Pooling
Agreement" in the base prospectus for more
information about the Sponsor, its securitization
programs, its solicitation and underwriting
criteria used to originate the Mortgage Loans and
its material roles and duties in this transaction.
All of the Mortgage Loans will be serviced by the
Servicer in accordance with the terms of the
Pooling Agreement. The Servicer may perform any of
its obligations under the Pooling Agreement
through one or more subservicers. Despite the
existence of subservicing arrangements, the
Servicer will be liable for its servicing duties
and obligations under the Pooling Agreement as if
the Servicer alone were servicing the Mortgage
Loans. See "The Sponsor," "Servicing of the
Mortgage Loans -- The Servicers," "-- Servicing
Experience and Procedures of Bank of America" and
"The Pooling Agreement" in the base prospectus for
more information about the Servicer, the
Servicer's experience, its servicing procedures
and its obligations under the Pooling Agreement.
Static Pool Information...... Information concerning the Sponsor's prior
residential mortgage loan securitizations
involving both fixed-rate first lien mortgage
loans underwritten in accordance with the
Sponsor's general underwriting standards described
in the base prospectus under "The Mortgage Loan
Programs--Mortgage Loan Underwriting--Bank of
America General Underwriting Standards" and first
lien mortgage loans underwritten in accordance
with the Sponsor's alternative underwriting
standards described in the base prospectus under
"--Bank of America Alternative Underwriting
Standards," and, in each case, issued by the
Depositor or the Depositor's predecessor is
available on the internet at
http://corp.bankofamerica.com/public/regulationab/
boams/index.jsp. Although those securitizations
involve the most comparable type of mortgage loans
to the type of Mortgage Loans contained in the
Mortgage Pool, the Sponsor also maintains on that
website, for the information of investors,
statistical data concerning the Sponsor's prior
residential mortgage loan securitizations
involving either fixed-rate first lien mortgage
loans or adjustable-rate first lien mortgage loans
underwritten in accordance with the Sponsor's
general underwriting standards issued by the
Depositor or the Depositor's predecessor.
Without charge or registration, investors can view
on this website the following information for each
of those securitizations:
Banc of America Securities LLC 24
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
- --------------------------------------------------------------------------------
o summary initial pool information; and
o delinquency, cumulative loss, and prepayment
information as of each Distribution Date for
the five years preceding the date of first
use of the prospectus supplement.
In the event any changes or updates are made to
the information available on the Sponsor's
website, the Depositor will provide a copy of the
original information upon request to any person
who writes or calls the Depositor. The Depositor's
address is 214 North Tryon Street, Mail Code
NC1-027-22-02, Charlotte, North Carolina 28255.
Its telephone number is (704) 387-8239.
This static pool data may have been influenced in
the past by factors beyond the Sponsor's control,
such as unusually robust housing prices, low
interest rates and changes in product type.
Therefore, the performance of prior residential
mortgage loan securitizations may not be
indicative of the future performance of the
Mortgage Loans.
Banc of America Securities LLC 25
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
YOU SHOULD FULLY CONSIDER THE RISKS ASSOCIATED
WITH AN INVESTMENT IN THE OFFERED CERTIFICATES.
BEFORE INVESTING YOU SHOULD CAREFULLY REVIEW
"RISK FACTORS" IN THE BASE PROSPECTUS TOGETHER
WITH THE RISK FACTORS SET FORTH BELOW.
Subordination of any
Super Senior Support
and Subordinate
Certificates Increases
Risk of Loss................. Subordinate certificateholders are more likely to
suffer losses as a result of losses or
delinquencies on the related Mortgage Loans than
are Senior certificateholders.
o The rights of each class of Subordinate
Certificates to receive distributions of
interest and principal are subordinated to
the rights of the related Senior Certificates
and each class of related Subordinate
Certificates higher in order of payment
priority.
o Losses that are realized on the Mortgage
Loans will be allocated first to the class of
related Subordinate Certificates lowest in
order of payment priority, then to the class
of related Subordinate Certificates next
lowest in order of payment priority and so
on, in reverse order of payment priority
until the outstanding Class Balances of such
classes have been reduced to zero.
Any Super Senior Support certificateholders should
consider the risk that after the related
Subordinate Certificates are no longer
outstanding, the principal portion of losses
realized on the applicable Mortgage Loans that are
allocated to a class of Super Senior Certificates
will be borne by the related class of Super Senior
Support Certificates, rather than such class of
Super Senior Certificates.
The Rate of Principal
Payments on the Mortgage
Loans Will Affect
the Yield on the
Offered Certificates......... Because principal payments on the Mortgage Loans
will be distributed currently on the related
Senior Certificates and the related Subordinate
Certificates, the rate of distributions of
principal and the yield to maturity on your
Certificates will be directly related to (i) the
rate and timing of payments of principal on the
applicable Mortgage Loans and (ii) the amount and
timing of defaults by borrowers that result in
losses on the applicable Mortgage Loans. Borrowers
are permitted to prepay their Mortgage Loans, in
whole or in part, at any time. The principal
payments on the Mortgage Loans may be in the form
of scheduled principal payments or principal
prepayments (for this purpose, the term "principal
prepayment" includes prepayments and any other
recovery of principal in advance of the scheduled
due date, including repurchases and liquidations
due to default, casualty, condemnation and
Banc of America Securities LLC 26
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
the like). Any of these prepayments will result in
distributions to you of amounts that would
otherwise be distributed over the remaining term
of the Mortgage Loans.
The rate of principal payments on the Mortgage
Loans will be affected by the following:
o the amortization schedules of the Mortgage
Loans;
o the rate of partial prepayments and full
prepayments by borrowers due to refinancing,
job transfer, changes in property values or
other factors;
o liquidations of the properties that secure
defaulted Mortgage Loans;
o repurchases of Mortgage Loans by the
Depositor as a result of defective
documentation or breaches of representations
or warranties;
o the exercise of due-on-sale clauses by the
Servicer in connection with transfers of
mortgaged properties;
o the optional repurchase of all the Mortgage
Loans by the Depositor to effect a
termination of the Trust or certain of the
Mortgage Loans in the Trust when the
aggregate Stated Principal Balance of the
related Mortgage Loans is less than 10% of
the aggregate unpaid principal balance of
such Mortgage Loans as of the cut-off date;
and
o general and targeted solicitations for
refinancing by mortgage originators
(including the Sponsor).
The rate of principal payments on the Mortgage
Loans will depend greatly on the level of mortgage
interest rates:
o If prevailing interest rates for similar
mortgage loans fall below the interest rates
on the Mortgage Loans in the Trust, the rate
of prepayment is likely to increase.
o Conversely, if prevailing interest rates for
similar mortgage loans rise above the
interest rates on the Mortgage Loans in the
Trust, the rate of prepayment is likely to
decrease.
If you are purchasing any Offered Certificates at
a discount, and specifically if you are purchasing
principal only certificates, you should consider
the risk that if principal payments on the
applicable Mortgage
Banc of America Securities LLC 27
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
Loans, or in the case of any ratio strip
certificates, some or all of the Discount Mortgage
Loans, occur at a rate slower than you expected,
your yield will be lower than you expected. If you
are purchasing any Offered Certificates at a
premium, and specifically if you are purchasing
interest only certificates, you should consider
the risk that if principal payments on the
applicable mortgage loans or, in the case of
interest only certificates whose notional amount
is based on some or all of the Premium Mortgage
Loans, such Premium Mortgage Loans, occur at a
rate faster than you expected, your yield may be
lower than you expected. You must make your own
decisions as to the appropriate prepayment
assumptions to be used when purchasing any Offered
Certificates. The applicable Senior Prepayment
Percentage of the applicable Non-PO Percentage of
all principal prepayments (excluding for this
purpose, partial liquidations due to default,
casualty, condemnation and the like) initially
will be distributed to the classes of related
Senior Non-PO Certificates then entitled to
receive principal prepayment distributions. This
may result in all (or a disproportionate
percentage) of those principal prepayments being
distributed to such Senior Non-PO Certificates and
none (or less than their pro rata share) of such
principal prepayments being distributed to holders
of the related Subordinate Certificates during the
periods of time described in the applicable
definition of "Senior Prepayment Percentage."
The timing of changes in the rate of prepayments
may significantly affect the actual yield to you,
even if the average rate of principal prepayments
is consistent with your expectations. In general,
the earlier the payment of principal of the
related Mortgage Loans, the greater the effect on
your yield to maturity. As a result, the effect on
your yield of principal prepayments occurring at a
rate higher (or lower) than the rate you
anticipate during the period immediately following
the issuance of the certificates will not be
offset by a subsequent like reduction (or
increase) in the rate of principal prepayments.
Any Yield Maintenance
Agreement is Subject
to Counterparty Risk......... The Trustee on behalf of the Trust may enter into
one or more Yield Maintenance Agreements with one
or more counterparties, for the benefit of certain
Classes of Certificates. Each Yield Maintenance
Agreement will require the applicable counterparty
to make certain payments in certain circumstances.
To the extent that payments on such Certificates
depend in part on payments to be received by the
Trustee under the related Yield Maintenance
Agreement, the ability of the Trustee to make such
payments on such Certificates will be subject to
the credit risk of the applicable counterparty.
Banc of America Securities LLC 28
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
Delinquencies and
Losses on the Mortgage
Loans Will Adversely
Affect Your Yield............ Delinquencies on the mortgage loans which are
not advanced by or on behalf of the Servicer
(because the Servicer has determined that these
amounts, if advanced, would be nonrecoverable),
will adversely affect the yield on the related
Senior Certificates and the related Subordinate
Certificates. The Servicer will determine that a
proposed advance is nonrecoverable when, in the
good faith exercise of its servicing judgment, it
believes the proposed advance would not be
ultimately recoverable from the related mortgagor,
related liquidation proceeds, or other recoveries
in respect of the Mortgage Loan. Because of the
priority of distributions, shortfalls resulting
from delinquencies that are not covered by
advances will be borne first by the related
Subordinate Certificates (in reverse order of
payment priority), and then by the related Senior
Certificates.
Net interest shortfalls will adversely affect the
yields on the Offered Certificates. In addition,
losses generally will be borne by the related
Subordinate Certificates. As a result, the yields
on the Offered Certificates will depend on the
rate and timing of realized losses on the related
Mortgage Loans.
There Are Risks Relating
to Exchangeable REMIC
Certificates and
Exchangeable Certificates.... If you are purchasing any Exchangeable REMIC
Certificates or Exchangeable Certificates, you
should consider that the characteristics of any
Exchangeable Certificates will reflect, in the
aggregate, generally the characteristics of the
related Exchangeable REMIC Certificates. Investors
are encouraged to also consider a number of
factors that will limit a certificateholder's
ability to exchange Exchangeable REMIC
Certificates for Exchangeable Certificates and
vice versa:
o At the time of the proposed exchange, a
certificateholder must own Certificates of
the related Class or Classes in the
proportions necessary to make the desired
exchange.
o A certificateholder that does not own the
Certificates may be unable to obtain the
necessary Exchangeable REMIC Certificates or
Exchangeable Certificates because the holders
of the needed Certificates may be unwilling
or unable to sell them or because the
necessary Certificates have been placed into
other financial structures.
o Principal distributions will decrease the
amounts available for exchange over time.
Banc of America Securities LLC 29
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
Credit Scores May Not
Accurately Predict the
Likelihood of Default........ The Sponsor generally uses Credit Scores as part
of its underwriting process. The attached
collateral summary shows credit scores for the
mortgagors obtained at the time of origination of
their mortgage loans. A credit score purports only
to be a measurement of the relative degree of risk
a borrower represents to a lender, i.e., that a
borrower with a higher score is statistically
expected to be less likely to default in payment
than a borrower with a lower score. In addition,
it should be noted that credit scores were
developed to indicate a level of default
probability over a two-year period, which does not
correspond to the life of most mortgage loans.
Furthermore, credit scores were not developed
specifically for use in connection with mortgage
loans, but for consumer loans in general.
Therefore, credit scores do not address particular
mortgage loan characteristics that influence the
probability of repayment by the borrower. Neither
the Depositor nor the Sponsor makes any
representations any mortgage loan or that a
particular credit score should be relied upon as a
basis for an expectation that a borrower will
repay its mortgage loan according to its terms.
Geographic Concentration
May Increase Risk of Loss
Due to Adverse Economic
Conditions or Natural
Disasters.................... At various times, certain geographic regions will
experience weaker economic conditions and housing
markets and, consequently, will experience higher
rates of delinquency and loss on mortgage loans
generally. In addition, certain states have
experienced natural disasters, including
earthquakes, fires, floods and hurricanes, which
may adversely affect property values. Although
mortgaged properties located in certain identified
flood zones will be required to be covered, to the
maximum extent available, by flood insurance, no
mortgaged properties will otherwise be required to
be insured against earthquake damage or any other
loss not covered by standard hazard insurance
policies. Any concentration of mortgaged
properties in a state or region may present unique
risk considerations. See the tables entitled
"Geographic Distribution of Mortgaged Properties
of the Mortgage Loans" in the attached collateral
summary for a listing of the locations and
concentrations of the mortgaged properties.
Any deterioration in housing prices in a state or
region due to adverse economic conditions, natural
disaster or other factors, and any deterioration
of economic conditions in a state or region that
adversely affects the ability of borrowers to make
payments on the mortgage loans, may result in
losses on the Mortgage Loans. Any losses may
adversely affect the yield to maturity of the
related Offered Certificates.
Banc of America Securities LLC 30
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
Residential Real Estate
Values May Fluctuate and
Adversely Affect Your
Investment................... There can be no assurance that values of the
mortgaged properties have remained or will remain
at their levels on the dates of origination of the
related Mortgage Loans. The value of any mortgaged
property generally will change over time from its
value on the appraisal or sales date. If
residential real estate values generally or in a
particular geographic area decline, the
loan-to-value ratios shown in the table in the
accompanying collateral annex might not be a
reliable indicator of the rates of delinquencies,
foreclosures and losses that could occur on the
Mortgage Loans. If the residential real estate
market should experience an overall decline in
property values large enough to cause the
outstanding balances of the Mortgage Loans and any
secondary financing on the related mortgaged
properties to equal or exceed the value of the
mortgaged properties, delinquencies, foreclosures
and losses could be higher than those now
generally experienced in the mortgage lending
industry or in the Sponsor's prior securitizations
involving the Depositor.
In addition, adverse economic conditions and other
factors (which may or may not affect real property
values) may affect the mortgagors' timely payment
of scheduled payments of principal and interest on
the Mortgage Loans and, accordingly, the actual
rates of delinquencies, foreclosures and losses
with respect to the mortgage pool. These other
factors could include excessive building resulting
in an oversupply of housing in a particular area
or a decrease in employment reducing the demand
for housing in an area. To the extent that credit
enhancements do not cover such losses, your yield
may be adversely impacted.
United States Military
Operations May Increase
Risk of Relief Act
Shortfalls................... As a result of military operations in Afghanistan
and Iraq, the United States has placed a
substantial number of armed forces reservists and
members of the National Guard on active duty
status. It is possible that the number of
reservists and members of the National Guard
placed on active duty status may remain at high
levels for an extended time. To the extent that a
member of the military, or a member of the armed
forces reserves or National Guard who is called to
active duty, is a mortgagor of a mortgage loan in
the trust, the interest rate limitation of the
Servicemembers Civil Relief Act, and any
comparable state law, will apply. This may result
in interest shortfalls on the Mortgage Loans in
the trust, which will be borne by all classes of
interest bearing Certificates and components.
Neither the Sponsor nor the Depositor has taken
any action to determine whether any of the
Mortgage Loans would be affected by these interest
rate limitations.
Banc of America Securities LLC 31
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
The Certificates May
Not Receive Amounts
Expected from any Yield
Maintenance Agreements....... The yield maintenance agreement payment for any
Distribution Date will be based on the lesser of
(x) the Class Balance(s) of the related Class or
Classes or (y) the related notional amount, which
will decrease for each Distribution Date during
the life of the applicable yield maintenance
agreement. The notional amounts are generally
derived by using an assumed prepayment rate for
the applicable mortgage loans. The actual rate of
prepayment on the applicable mortgage loans is
likely to differ from the rate assumed. If
prepayments on these mortgage loans occur at a
rate slower than the rate used in determining the
notional amounts, the Class Balance(s) of the
related Class or Classes will be greater than the
related notional amount for a Distribution Date
and a holder of the related Certificates will
receive less than if the counterparty were
required to make payments based on the Class
Balance(s) of the related Class or Classes.
There is a Risk that
Interest Payments on the
Mortgage Loans May Be
Insufficient to Pay
Interest on Your
Certificates................. When a Mortgage Loan is prepaid in full, the
mortgagor is charged interest only up to the date
on which payment is made, rather than for an
entire month. When a mortgagor makes a partial
principal prepayment on a Mortgage Loan, the
mortgagor is not charged interest on the
prepayment for the month in which the principal
prepayment was received. This may result in a
shortfall in interest collections available for
payment on the next Distribution Date. The
Servicer is required to cover a portion of the
shortfall in interest collections that are
attributable to prepayments in full and partial
prepayments on the Mortgage Loans, but in each
case only up to the amount of Compensating
Interest related to such Mortgage Loans for such
Distribution Date. To the extent these shortfalls
are not covered by the amount of related
Compensating Interest, they will be allocated pro
rata to the related classes of interest-bearing
Certificates and any related components.
Certificates May Not Be
Appropriate for Individual
Investors.................... If you are an individual investor who does not
have sufficient resources or expertise to evaluate
the particular characteristics of a class of
Offered Certificates, the Offered Certificates may
not be an appropriate investment for you. This may
be the case because, among other things:
o if you purchase your Certificates at a price
other than par, your yield to maturity will
be sensitive to the uncertain rate and timing
of principal prepayments on the applicable
Mortgage Loans;
Banc of America Securities LLC 32
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
o the rate of principal distributions on, and
the weighted average lives of, the Offered
Certificates will be sensitive to the
uncertain rate and timing of principal
prepayments on the applicable Mortgage Loans
and the priority of principal distributions
among the classes of Certificates, and as
such, the Offered Certificates and, in
particular, any class of special retail
certificates, may be inappropriate
investments for you if you require a
distribution of a particular amount of
principal on a specific date or an otherwise
predictable stream of distributions;
o you may not be able to reinvest amounts
distributed in respect of principal on your
Certificates (which distributions, in
general, are expected to be greater during
periods of relatively low interest rates) at
a rate at least as high as the applicable
pass-through rate or your expected yield;
o a secondary market for the Offered
Certificates may not develop or provide you
with liquidity of investment; and
o you must pay tax on any interest or original
issue discount in the year it accrues, even
if the cash is paid to you in a different
year.
Limited Source of Payments --
No Recourse to Depositor,
Seller, Servicer or Trustee.. Proceeds of the Mortgage Loans (and any insurance
policy with respect to a class of insured special
retail certificates) will be the sole source of
payments on the Certificates. The Certificates do
not represent an interest in or obligation of the
Depositor, the Servicer, the Sponsor, the Trustee
or any of their affiliates. There are, however,
limited obligations of the Depositor with respect
to certain breaches of representations and
warranties, and limited obligations of the
Servicer with respect to its servicing
obligations.
Neither the Certificates nor the Mortgage Loans
will be guaranteed by or insured by any
governmental agency or instrumentality, the
Depositor, the Sponsor, the Servicer, the Trustee
or any of their affiliates. Consequently, if
payments on the Mortgage Loans are insufficient or
otherwise unavailable to make all payments
required on the Certificates, there will be no
recourse to the Depositor, the Sponsor, the
Servicer, the Trustee or any of their affiliates.
Limited Liquidity............ The Underwriter intends to make a market for
purchase and sale of the Offered Certificates
after their initial issuance, but the Underwriter
has no obligation to do so. There is no assurance
that such a secondary market will develop or, if
it does develop, that it will provide you with
liquidity of investment or that it will continue
for the life of the Offered Certificates. As a
result, you may not be able to sell your
Certificates
Banc of America Securities LLC 33
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
or you may not be able to sell your Certificates
at a high enough price to produce your desired
return on investment.
The secondary market for mortgage-backed
securities has experienced periods of illiquidity
and can be expected to do so in the future.
Illiquidity means that there may not be any
purchasers for your class of Certificates.
Although any class of Certificates may experience
illiquidity, it is more likely that classes of
Certificates that are more sensitive to
prepayment, credit or interest rate risk (such as
the Interest Only, Super Senior Support,
Companion, Inverse Floating Rate, Principal Only,
or Subordinated Certificates) will experience
illiquidity.
Alternative Underwriting
Standards May Increase
Risk of Loss................. Certain of the Mortgage Loans may have been
originated using the Sponsor's "Alternative A"
underwriting guidelines. See "The Mortgage Loan
Programs--Mortgage Loan Underwriting--Bank of
America Alternative Underwriting Standards" in the
base prospectus. These underwriting guidelines are
different from and, in certain respects, less
stringent than the general underwriting guidelines
employed by the sponsor. For example, certain of
the mortgage loans may have been originated with
less than standard documentation or with higher
maximum loan-to-value ratios. Accordingly, the
mortgage loans may experience rates of
delinquencies, defaults, foreclosure, bankruptcy
and loss that are higher than those experienced by
mortgage loans underwritten using the Sponsor's
general underwriting standards.
The Rate of Default on
Mortgage Loans that Are
Secured by Investor
Properties May be Higher
than on Other Mortgage
Loans........................ Certain of the Mortgage Loans may be secured by
investor properties. An investor property is a
property which, at the time of origination, the
mortgagor represented would not be used as the
mortgagor's primary residence or second home.
Because the mortgagor is not living on the
property, the mortgagor may be more likely to
default on the mortgage loan than on a comparable
mortgage loan secured by a primary residence, or
to a lesser extent, a second home. In addition,
income expected to be generated from an investor
property may have been considered for underwriting
purposes in addition to the income of the
mortgagor from other sources. Should this income
not materialize, it is possible the mortgagor
would not have sufficient resources to make
payments on the mortgage loan.
Mortgage Loans Having an
Interest Only Period May
Have a Higher Risk Of
Default or Rates of
Prepayment................... Certain of the Mortgage Loans may have an initial
interest only period after the date of
origination. During this interest only period, the
Banc of America Securities LLC 34
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
payment due from the related mortgagor will be
less than that of a traditional mortgage loan. In
addition, the principal balance of the mortgage
loan will not be reduced (except in the case of
prepayments) because there will be no scheduled
monthly payments of principal during this period.
Accordingly, no principal payments will be
distributed to the related Certificates from these
Mortgage Loans during their interest only period
except in the case of prepayment.
After the initial interest only period, payments
on a mortgage loan with an interest only period
will be recalculated to amortize fully its unpaid
principal balance over its remaining life and the
mortgagor will be required to make scheduled
payments of both principal and interest. The
required payment of principal will increase the
burden on the mortgagor and may increase the risk
of default or prepayment under the related
mortgage loan. In underwriting mortgage loans with
interest only periods, the Sponsor generally does
not consider the ability of mortgagors to make
payments of principal at the end of the interest
only period. Higher scheduled monthly payments may
induce the related mortgagors to refinance their
mortgage loans, which would result in higher
prepayments. In addition, in default situations
losses may be greater on these mortgage loans
because they do not amortize during the initial
period. These losses will be allocated to the
Certificates.
The performance of mortgage loans with an interest
only period may be significantly different from
mortgage loans that amortize from origination. In
particular these mortgagors may be more likely to
refinance their mortgage loans, which may result
in higher prepayment speeds than would otherwise
be the case.
There Are Risks Relating
to Mortgaged Properties
Subject to Second Lien
Mortgage Loans............... At the time of origination of certain of the
Mortgage Loans, a lender other than the Sponsor
may have originated a second lien mortgage loan.
Mortgage Loans that have second lien mortgage
loans encumbering the same mortgaged property may
have higher rates of delinquency and foreclosure
relative to mortgage loans that do not have second
lien mortgage loans behind them. This may be due
to changes in the mortgagor's debt-to-income
profile, the fact that mortgagors may then have
less equity in the mortgaged property or other
factors. You should also note that any mortgagor
could obtain a second lien mortgage loan at any
time subsequent to the date of origination of
their first lien mortgage loan from any lender.
Subordinate Certificates
May Provide Subordination
for All
Banc of America Securities LLC 35
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
Banc of America Alternative Loan Trust 2007-1
Mortgage Pass-Through Certificates, Series 2007-1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
Groups....................... The Subordinate Certificates may provide credit
support for more than one Groups of Senior
Certificates and thus the outstanding Class
Balances of such Subordinate Certificates could be
reduced to zero as a result of a disproportionate
amount of principal losses on the Mortgage Loans
in one Loan Group. Therefore, these losses on the
Mortgage Loans in one Loan Group will reduce the
subordination provided by the Subordinate
Certificates to the other Groups of Senior
Certificates and increase the likelihood that
losses may be allocated to the other Groups of
Senior Certificates.
Under certain circumstances due to a
cross-collateralization mechanism, principal
otherwise payable to these Subordinate
Certificates will be paid to certain Senior
Certificates.
High Rates of LIBOR or
Another Index May Result
in a Lower or Negative
Yield on any Inverse
Floating Rate Interest
Only Certificates............ If you are purchasing any inverse floating rate
interest only certificates, in addition to the
risk that a rapid rate of prepayments on the
related Mortgage Loans may result in a lower
actual yield than you expected or a negative
yield, you should also consider the risk that high
rates of LIBOR or high rates of another applicable
index for your certificates may result in the
failure to recover your initial investment.
Categories of Classes of Certificates
The Certificates of any series may be comprised of one or more classes.
The classes, in general, fall into different categories. The chart in the base
prospectus under the heading "Description of the Certificates--Categories of
Classes of Certificates" identifies and generally defines certain of the more
typical categories. The prospectus supplement for a series of Certificates may
identify the classes which comprise that series by reference to those categories
or another category specified in the prospectus supplement.
Banc of America Securities LLC 36
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- ------------------------------------------------------------------------------